Leonard Green’s Twice-Bankrupt JOANN: A Cautionary Tale?

Wrong industry, wrong time? Or a 13-year-long, PE-backed path to bankruptcy? We take a deep dive into Leonard Green’s troubled stewardship of the asset.

Feb 07, 2025

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2025 got off to a rough start for crafts retailer JOANN, with the company filing for Chapter 11 bankruptcy for the second time in under 12 months this January.

Michael Prendergast, JOANN’s interim CEO, blamed the second bankruptcy on the “significant and lasting challenges” that have plagued the retail industry over the past several years, coupled with JOANN’s precarious financial position and “constrained” levels of inventory.

Leonard Green’s Twice-Bankrupt JOANN: A Cautionary Tale?

Wrong industry, wrong time? Or a 13-year-long, PE-backed path to bankruptcy? We take a deep dive into Leonard Green’s troubled stewardship of the asset.

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